Leaving the civil service pension

newhere_3

Hi i was wandering if you can help

I recently left the civil service and was on a civil service pension scheme for 4 years my employer would put in £300 a month approx and my contribution was approx £70 a month.

Im getting married later this year and looking to unlock my pension funds, but im not sure if this is possible.

If i transfer my civil service pension to a private pension, can i in theory unlock the money held in my pension? , i am only 25 years old and my new job has a decent pension so i dont mind losing the civil service pension for when im older if i can unlock some of the money at this stage.

I would be grateful for your thoughts

Many thanks

worried_jim

No you can't (unless you have terminal illness). Pensions are protected to stop people spunking them before they reach retirement age. There are some dodgy pension liberation schemes available but you will lose most of your money to tax.

xylophone

You cannot unlock your pension - it is not an easy access deposit account!

The only way to access it ( short of terminal illness/ incapacitating illness) is at the earliest age that taking benefits is permitted under scheme rules.

If your new scheme is a defined benefits arrangement with a private or public service employer, a transfer out to the new scheme may be a possibility.

http://www.civilservicepensionscheme.org.uk/members/deferred/information-for-deferred-members/

atush

You cannot touch the money until you are 55-57 plus, and should not touch it until 67 unless you want to waste the money.

If you cant afford the wedding w/o this money, have a hog roast at the church hall.

Hopefully your OH will be better with money.

sandsy

The clue is in the word pension - it's a benefit earmarked for your retirement. If you want to build up savings you can access earlier, think about an ISA.

newhere_3

Ok thanks, i was just weighing up all my options

If this could have been unlocked it would have given me a big head start in early life e.g sorting out a deposit for a home and therefore standing on my two feet at 25 years old rather than 55!!!

Thrugelmir

newhere wrote: »

If this could have been unlocked it would have given me a big head start in early life e.g sorting out a deposit for a home and therefore standing on my two feet at 25 years old rather than 55!!!

You'll appreciate the pension built up in later life.

bigfreddiel

worried_jim wrote: »

No you can't (unless you have terminal illness). Pensions are protected to stop people spunking them before they reach retirement age. There are some dodgy pension liberation schemes available but you will lose most of your money to tax.

I love your terminology "...stop people spunking them...." and exactly right!

Cheers fj

Muscle750

Thrugelmir wrote: »

You'll appreciate the pension built up in later life.

Not working in the private sector you wont believe me

atush

newhere wrote: »

Ok thanks, i was just weighing up all my options

If this could have been unlocked it would have given me a big head start in early life e.g sorting out a deposit for a home and therefore standing on my two feet at 25 years old rather than 55!!!

Yeah I get that idea- but the truth is in the name- Pension. which has no connotations for funding 'early life'. Al the connotations are for later life.

Early life is funded thru savings, earnings, and cutting back on spending (and dare i say gifts)- always spend less than you earn.

RickyB2000

newhere wrote: »

Ok thanks, i was just weighing up all my options

If this could have been unlocked it would have given me a big head start in early life e.g sorting out a deposit for a home and therefore standing on my two feet at 25 years old rather than 55!!!

Don't forget, most of your pension value comes from your employer contributions (£300 compared to your £70). That was put in specifically to provide you a pension. The same with the tax relief you received. It is not a free pay rise for today. If you could access it early, (and some schemes allow you to withdraw if you are in for less than 2 years), you would lose all your employer contributions and pay tax on your own contributions. So it would be worth a lot less. You will be thankful when you ar 55 for this pension. I would say you have a great start to life with this in the bank.